Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

Export

Kunal Pansari (Accountant) (1037 Points)

25 November 2018

My client wants to export his goods to Bhutan. He has Import Export Code but doesn't have LUT or Bond. It is his first export. Please explain the process

Reply
Follow
Share

1 Replies

felix thomas (student) (159 Points)
Replied 25 November 2018

As per section 16 of the IGST Act, 2017, export of goods or services is a zero rated supply. He has two option in this case. Either he should apply for LUT and export without payment of IGST or he can export goods on payment of IGST and claim the refund. As the process of refund would take time it would affect the working capital of the entity. Hence the better option is to apply for LUT and then export without payment of IGST.